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Construction sector to lose three-quarters of profits in 2009

Financial advisors Grant ThorntonUK say the construction and property sectors will suffer profits down 75% and turnover down 71% compared to the same period last year.

The figures form part of Grant Thornton's International Business Report (IBR), which canvassed 7,200 businesses across 36 countries including senior executives in 600 large and medium sized business in the UK.

Grant Thornton's Head of Property and Construction, Clare Hartnell, says: "Profitability and turnover within the construction and property sector are significantly driven by sales and market value; 2008 was a turbulent year as credit dried up and confidence plummeted causing house prices and the number of properties sold to fall sharply.

"The decline in the residential market consequently has had a knock-on-effect on the construction sector where problems have been exacerbated by huge debts as many proposed developments have been put on hold.

"2009 is set to be a trying year to say the least. Part of the reason for this is the current state of the economy. Lack of available credit will have an adverse effect on the ailing construction and property sector," she said.

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